For older games, it's better to get them on gog.com. They have a business model based on modifying older games (with publisher permission) to get them to work on the latest OS's.
[HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Microsoft\DirectDraw\Compatibility\Fallout2]
"Flags"=hex:00,08,00,00
"Name"="fallout2.exe"
"ID"=dword:362ef769
I managed to fix it guys, thanks for the suggestions any way.
I installed US patch 1.02 and then the Restoration project patch.
Not only is it fixed, I have additional content and improved graphics.